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  1. avatar says

    Hi, Mike

    One of my company’s benefit for management staff is giving a “grant” called Long Term Incentive Plan (LTIP), which they will state in this grant letter how much they will pay you a lump sum in 3 years time with terms and condition. It will be “burn” if you resign within that period of 3 years. Grant is renewed every 3 years.

    My Q (for my understanding of terminology of “Post Employment Benefits” as per IAS 19)

    Does LTIP being defined as “post employmen benefit”?

    My confusion-after completion of employment. Does that mean after resigning as well? Retiring-for me, no confusion here. I believe it should fit into this terminology. Am I correct for this?

    Thank you in advance.

    • Profile photo of MikeLittle says

      I don’t think this is an employee benefit under IAS 19

      It sounds more like a share-based payment under IFRS 2 except there are no shares apparently involved.

      I imagine the same rules apply calculate the total value involved. Divide by 3. Dr PorL by that amount for each of 3 years building up the obligation and, at the end of 3 years, settle the obligation.

      Hope that helps

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